The popular streaming service Netflix, on Tuesday, announced that it is going to raise the subscription fees for its new users, starting from the 1st February 20019, and will be doing the same for its existing subscribers after three months. The price rise will be between 13 to 18 per cent of the present plans, which is the highest, in more than two decades of its functioning.
Netflix’s cheapest monthly subscription plan is of $7.99, which now will be $8.99, and the most popular plan of Netflix, streaming HD on two different devices, currently costs $10.99 for a month’s subscription, will be raised to $12.99. Also, the four devices plan, the premium plan for 4K streaming, will be raised from $13.99 to $15.99 per month.
The reason Netflix gave for the rise in the prices is that it has been investing a lot in its original series’. The hike in the subscription plans will help it financially to focus more on the original programming.
“We change pricing from time to time as we continue investing in great entertainment and improving the overall Netflix experience,” a representative at Netflix, said.
Currently, more than 58 million people are subscribed to Netflix in the US only, and the last hike it had put on the subscription fee was in 2017. But this time the price rise is way higher, that may attract some criticism. Also, the raised cost may affect Netflix’s new subscribers, and it may face a number of cancellation from its existing users.
In 2011, the company had divided its movie rental service, leading to two subsequent services, one had the movie streaming over the internet, and the other was the DVDs in the mail service. This had caused a lot of criticism, and Netflix lost over 80,000 subscribers at once. At the same time, Netflix’s stock price also had dropped 77 per cent in just four months.
“The Black Mirror”, “Orange Is The New Black”, “Stranger Things”, and now “BirdBox”, Netflix has been providing with unique quality content over the years, and for keeping up with the competition, the company is pushing its limits. Raising the prices will certainly work well for Netflix, but are the users ready to pay that much?
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.